Accounting basics: Debits and Credits explained

If there’s one piece of accounting jargon that trips people up the most, it’s “debits and credits.”

What exactly does it mean to “debit” and “credit” an account? Why is it that debiting some accounts makes them go up, but debiting other accounts makes them go down? And why is any of this important for your business?

👥 Join our FB Community - Profit First UK

🔗 Links:

The Accounting Equation:

If you’re struggling to understand the accounting for your business, I’d love to help! Reach out to me at and let me know how I can help!

If you want me & my team's expert accounting and tax help, you can book a fitting call through our website → 🌏

book a call button

About the Author

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

Build Your Implementable Profit Plan

Change your profitability and stop feeling like you are working so hard just to make sure you can make payroll each month, with the Profit Plan method.